Seven transatlantic shipping lines face the possibility of a damages suit filed by hundreds of American shippers involving many millions of dollars. Already 31 shippers have filed private civil anti-trust cases against the lines—American Export Lines, Seatrain, United States Lines, Sea-Land Services, Hapag-Lloyd, Dart Containerline and Atlantic Container Line. It is possible that the affair will snowball into a “class action suit” under which all the lines’ customers in the period covered will be invited to participate and claim damages. Only now are the ramifications of the Department of Justice’s indictment of the lines earlier this year for alleged anti-trust offences beginning to be fully realised.

In June the lines pleaded nolo contendere—no contest, neither guilty nor not guilty—and reached an agreement whereby fines totalling $6.1 million were paid by the seven lines and 13 individuals who were also indicted. Having come to this arrangement the lines could be forgiven for thinking that the whole anti-trust issue was over. But under American law there is also a statutory right for private parties also to file anti-trust suits and attempt to prove damages due to alleged price-fixing.

The nolo contendere agreement will have no bearing on the private civil cases. Any decision against the lines, whether in favour of 31 companies, or, if it reaches the stage of a class action suit, will involve treble damages. If the court decides that the lines were rate-fixing, the shippers will normally be entitled to receive the difference between the rate as paid and the rate as it is judged it should have been threefold. Currently the lines are pressing for the consolidation of the 31 cases brought so far, enabling the suits to be judged as one in a single court. The lines have chosen the southern district court of New York. Although the plaintiffs are willing for the suits to be handled in one court, they prefer Washington. A consolidated anti-trust case has the advantage of cutting out time, energy and money spent on travelling to various courts in the United States to hear each suit individually. It will also rule out the possibility of inconsistent judgments.

The 40:40:20 UNCTAD liner code is being violated in trade between France and the Ivory Coast—the first nation to reach agreement with France—according to the country’s shippers’ council. In its annual report, the French Shippers’ Council says the French fleet continues its traditional dominance by carrying 50% of the freight, by value. Ivory Coast ships are carrying 45% and third country fleets less than 10%. French shippers claim that the whole issue has brought to light the obscurity of the UNCTAD code. The code is not precise, says the council, as it does not make it clear whether the trade should be split by value of freight carried, by ports or by coasts served.

African Governments who had already ratified the UNCTAD code of conduct have either proceeded unilaterally or by bilateral agreements, the council points out. It is